By: Manoah Kikekon
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| Lagos State University |
Several students of Lagos State University has cried out as the University withholds students loan and still insist the students pay school fees, threatening to close course registration portal ahead exam.
For Grace (not her real name), a final-year student at Lagos State University (LASU), the Federal Government’s student loan was meant to be a lifeline. Instead, it has become a source of paralyzing debt and administrative nightmare. With the university threatening to shut its fees portal by December 31, 2025, Grace like many others faces being locked out of her academic records, despite LASU allegedly holding her loan funds for months. “They have my money, my parents were forced to pay again, and now they say I could be barred,” she shared anonymously, her voice laced with panic. “This loan I must repay is doing me no good.”
A major scandal is brewing at Lagos State University (LASU) over the alleged mismanagement of the Federal Government student loan scheme. Multiple student sources accuse the university administration of withholding disbursed loan funds, forcing double payments from parents, and failing to process refunds for close to two months. This crisis threatens to undermine President Bola Tinubu’s flagship education intervention, designed to ease economic hardship for Nigerian families.
The Core Allegation - Sabotage of Scheme
The students’ ordeal began when LASU allegedly threatened to deactivate its school fees portal, pressuring parents to pay upfront. Subsequently, the Nigerian Education Loan Fund (NELFUND) disbursed the approved loans directly to the university. When students requested the received funds be applied to future sessions, they were reportedly told university policy mandated a refund to their personal accounts—refunds that have allegedly never materialized.
Deepening Crisis & Impact
The situation has created a chaotic financial trap. Some students, fearing academic disruption, paid fees a second time while LASU held their loan money. Consequently, the university is now accused of holding up to two years' worth of fees for some students. Disturbingly, the issue spans all levels: from current 200 to 400-level students to some who have already graduated, yet cannot clear their financial records with the institution.
Call to Action & Federal Investigation
Calls are now mounting for the Tinubu administration to launch an immediate investigation into what is being termed a deliberate “sabotage” of the student loan programme. Advocates argue that LASU’s actions not only burden families but also risk destroying confidence in a critical policy, as students remain saddled with debt for money they never benefited from.
Policy Recommendation & Wider Implication
To prevent future occurrences, stakeholders are urging a fundamental policy shift: student loans should be paid directly to beneficiaries, not institutions. “The loan is a student’s debt, not the school’s,” one source emphasized. This pattern, reportedly observed in other institutions, highlights a systemic vulnerability in the loan scheme’s current architecture.
Final Appeal & Deadline Pressure
All eyes are now on the LASU management led by Professor Ibiyemi Olatunji-Bello. There is a fervent appeal to suspend the December 31, 2025, portal closure deadline, conduct a transparent audit, and expedite refunds to all affected students. Furthermore, students with verified loan approvals are pleading for academic grace to continue their studies uninterrupted, pending the resolution of funds they are certain the government has released.